A look at gains of CBN new policy on cheque deposit into Savings account
Among the many new policies released by the Central Bank of Nigeria (CBN), one very positive one that will encourage retail investors is that bank customers who have savings account can now deposit cheques into their account. Before now, commercial banks in Nigeria do not allow any cheque pass through savings account.
This is good news for retail investors with the following advantages:
- Dividend warrants can now be easily deposited into savings account: Retail investors who have shares in companies get their returns through a dividend warrant, often the dividend warrants comes with little value which will have to pass through a current account, with this new policy by CBN, this instrument can now be deposited into a savings account.
- Small business owners can now do cheque transactions: With this new policy, small business owners will no longer be scared to consummate transactions in cheque, before now they usually do not accept cheques especially when it is above the cash threshold of N150,000 which must pass through a current account. But now that cheques can be deposited into savings account, retail business owners can now seamlessly perform cheque transactions using their savings account.
- It is an upgrade to Savings account: According to CBN policy, their are three tiers of account bank customers can operate, tier one, two and three. Savings account falls within tier one which is limited as to some threshold and non-cheque lodgement, with this policy in place it is an upgrade because cheques can now pass through savings account.
- More flexibility in Bank transactions: This policy will bring more flexibility in bank transaction, customers now have more options of making and accepting payments into their bank accounts, with the flexible forex policy in place, CBN is on a path for a more flexible banking in Nigeria.